Abstract

Topic: Role of IT in improving the efficiency of Operations

Team: Mahendra K Patidar Email: 0911pgdbif017@ipeindia.org
Kranthi Kumar D. Email: 0911pgdbif014@ipeindia.org
Alekhya G. Email: 0911pgdbif001@ipeindia.org

Operations management is an area of business concerned with the production of

goods and services, and involves the responsibility of ensuring that are in terms of using
as little resource as needed, and in terms of meeting customer requirements. It is
concerned with managing the process that converts inputs (in the forms of materials,
labor and energy) into outputs (in the form of goods and services).

A key consideration is the overall IT investment strategy. While one company

may require strict control and thus prefer software deployed in-house, another may seek
to minimize its IT resources through software delivered as a service over the Internet.
Choosing the business solution that matches a company’s IT philosophy is critical to
successful implementation and company-wide adoption.

For most corporations, the cost of delivering IT and other internal services
represents three to fifteen percent of revenue. Faced by continued cost pressures, together
with the business units’ growing demand for new IT services and higher service levels,
internal service teams are embarking on a fundamental transformation. CIOs and other
service delivery executives must align their services with the needs of the business,
improve internal customer satisfaction, and deploy standardized processes to achieve
greater operational efficiency.

In this paper presentation, we elaborate the role of IT software’s & services to

improve the efficiency of operations. Because greater efficiency is a prime goal for all
businesses, nowhere more so than in the intensely competitive and rapidly changing
production sector. We concentrate the below listed Five ways to improve operational
efficiency. These are:

1. Analyze the current situation

2. Optimize business processes
3. Modernize existing assets
4. Expand fast and flexibly
5. Maximize the growth opportunity
Introduction: When we think about the topic, than first question arises in our mind is
what is operation? Operations management is an area of business concerned with the
production of goods and services, and involves the responsibility of ensuring that are in
terms of using as little resource as needed, and in terms of meeting customer
requirements. It is concerned with managing the process that converts inputs (in the
forms of materials, labour and energy) into outputs (in the form of goods and services).
Now second question arises is what is Information Technology? Information technology
(IT), as defined by the (ITAA), is "the study, design, development, implementation,
support or management of computer-based, particularly software applications and
computer hardware.

Achieving world-class quality and productivity in the production and delivery of

goods and services, especially through the strategic use of information technology, has
become a critical challenge faced by modern management. Managers must deal with
rapid changes in technology, tightening environmental standards, and fundamental
changes in the global economy. Operations and Information Management Department
seeks to help meet this challenge through its research and educational programs, basing
its approach on effective information management and the development of enhanced
decision-making processes.

Operations and Information Management places special emphasis on economic

analysis and formal modeling of strategic and operational control problems to be found in
the critical processes associated with the design, production, and distribution of goods
and services. Within the Operations and Information Management Major, there are three
tracks:

 Operations Management Track: focusing on the processes that define an

organization's outputs and are central to its competitive performance, including
services and traditional areas of manufacturing and logistics.
 Information and Decision Technology Track: focusing on the analytical and
information technology-based methods for managing complex organizations
  Decision Processes Track: focusing on the processes by which choices are made
when it is difficult to compare outcomes in the face of uncertainty and when there
are conflicting views and motivations of the principal stakeholders

Information related to Strategy, Systems, and Economics focuses on understanding

the strategic aspects of information and information management. The availability of
information at an acceptable cost anywhere, any time, at any speed, and for almost any
purpose has profoundly affected all aspects of management. What were once skills of
specialized technologists are now critical aspects of the preparation of all executives.

Role of Information Technology: Across nearly all industries, today’s small businesses
and midsize companies are concerned with improving operational efficiency to support
profitable growth. Facing an increasingly competitive marketplace – characterized by
globalization, market consolidation, increasing regulation, competition for resources, and
the rapid pace of innovation – many companies report that improving operating
efficiency is critical to their ability to thrive. In fact, boosting efficiency and calibrating
capacity to meet potential expansion are the hallmarks of a successful company. Many
report that their IT infrastructures play a central role in achieving these goals. In a recent
survey of senior executives, 68% report that IT is critical to their organization’s ability to
grow, while an overwhelming 72% believe that retaining operational flexibility as they
grow hinges on their IT infrastructures. However, choosing the right business system and
IT infrastructure can be
challenging. When it comes to implementing technology infrastructure, one size does not
fit all. This paper briefly delineates the market challenges facing small businesses and
midsize companies, explores technology requirements, and concludes with overviews of
technologies specifically designed to help small businesses and midsize companies
improve operational efficiency and grow profitably. Let’s briefly look at some of these
challenges before exploring the business solutions that can help transform them into
opportunities:
• Globalization – With more companies entering the fray, competition increases across all
industries. However, small businesses and midsize companies that learn to leverage the
benefits of globalization can deliver quality products and compete on price at
international
levels. They can tap into global markets for lower-cost suppliers and win additional
customers in new markets.

• Market consolidation – As markets consolidate, small businesses and midsize

companies must contend with larger rivals. With increased buying power, larger
companies lower their production costs and put increasing price pressure on their smaller
competitors. On the customer side, market consolidation can also lead to larger, more
powerful entities that can demand lower prices, dictate terms of delivery, and in some
cases, influence IT investment decisions.

• Regulatory pressure – While small businesses and midsize companies must often
contend with regulatory requirements, they often lack the resources needed to fully
addressregulatory issues. Compliance can hinge on the technology infrastructure. Those
companies that do meet regulatory requirements achieve a competitive advantage over
their noncompliant rivals.

• Competition for resources – Small businesses and midsize companies report heightened
competition for financial, human capital, and material resources. As a result, the cost of
doing business rises and price pressures increase. To stay competitive, these companies
need to operate as efficiently as possible to attract needed capital, find key employees,
and source from the best suppliers.

• Rapid pace of innovation – With rivals delivering low-cost products to market faster
than ever, small businesses and midsize companies require IT infrastructures allowing
them to deliver differentiated products to market quickly. And by innovating on services,
they can provide higher quality at a lower price.
Right technology for right operations: For most corporations, the cost of delivering IT
and other internal services represents three to fifteen percent of revenue. Faced by
continued cost pressures, together with the business units’ growing demand for new IT
services and higher service levels, internal service teams are embarking on a fundamental
transformation. CIOs and other service delivery executives must align their services with
the needs of the business, improve internal customer satisfaction, and deploy
standardized processes to achieve greater operational efficiency. An effective business
solution streamlines operations, supports teamwork and global operations, and fosters
compliance. By ensuring speed, flexibility, and responsiveness as a company grows,
technology helps companies improve operational efficiency, customer service, and
innovation. And increasing operational efficiency means reduced costs and increased
margins. With the right business solution, companies can improve business operations by
using best practices and introducing automation that speeds processes. Automation
enables them to redirect resources away from administrative tasks to focus on activities
that can differentiate their products or services in the marketplace. Understanding
customer needs and responding to them rapidly helps build customer loyalty – critical for
businesses seeking to compete effectively against larger rivals. A business solution that
includes automated systems and customer self-service for administrative activities
enables customers to find answers quickly to routine questions online. Meanwhile,
critical customer support resources are freed up to focus on more pressing customer
needs.

Right strategy also works: A key consideration is the overall IT investment strategy.
While one company may require strict control and thus prefer software deployed in-
house, another may seek to minimize its IT resources through software delivered as a
service over the Internet. Choosing the business solution that matches a company’s IT
philosophy is critical to successful implementation and company-wide adoption. The
following highlights key benefits:
• Improved operational efficiency – By seamlessly integrating the entire business through
a single application, One eliminates redundant data entries and errors.

• Instant, complete, and accurate information – With Microsoft Excel based drill-down
reports, employees can navigate through a complete set of business data to get the
information they need instantly, whether working in the office or remotely over the Web.

• Improved sales effectiveness and customer relationships – With built-in customer

relationship management functionality, companies can expand online sales and provide
better customer service using Web-based e-commerce and customer self-service.

• Improved productivity – One helps employees proactively focus on the right priorities.
Workflow-based alerts enable employees to respond to the most important business
events as they occur, freeing them up from constantly reacting to day-to-day issues.

• Adaptability – The innovative, model driven approach and more than 350 solutions
from independent software vendors allow users to easily configure, customize, and
extend the system to meet specific business and industry needs.

Five ways to improve operational efficiency:

1. Analyze the current situation : With industry-leading operational efficiency

benchmarking, assessment and consultancy services, we help service providers identify
and address technological challenges and opportunities. Based on these analyses, we
work with them to develop long-term strategies for achieving their business goals.
Measuring and improving performance starts with our unique three-step benchmarking
process:

• Benchmark current operational efficiency against the most efficient service providers in
mature and emerging markets
• Assess the efficiency of work processes to identify areas for improvement.

• Develop solutions to raise performance in these areas. In every case, we provide a

unique solution building on past successes and in-depth experience More than 120
service providers on five continents have used this approach to create a direct linkage
between the technologies available, their business targets and concrete actions to improve
efficiency.

2. Optimize business processes: Optimizing and streamlining existing network operations

and business processes is the key to reducing OPEX and improving customer satisfaction.
By removing the business silos that isolate operations and business support systems , for
example, service providers gain more visibility on network operations, enable greater
automation and centralize network management. They also reduce integration,
maintenance and operational costs and speed up the time-to-market for new services.
Advanced network planning solutions enhance network coverage and reduce costs.
Optimization also extends to managed services solutions where we operate networks on
our customers’ behalf. Not only does this bring greater transparency and predictability of
OPEX, it also frees up resources for their core business of serving subscribers.

3. Modernize existing assets : Some communications networks have been in operation for
a decade or more and may not provide the optimum performance required in today’s
competitive environment. Through network modernization, service providers can
improve their profitability by increasing voice and data revenues, while cutting
operational costs. Our solutions comprise the latest network design capabilities to enable
flexible capacity enhancements. The replacement of old equipment also translates into
lower costs by reducing both the space required and energy consumption. Modernization
is also an effective route to simplifying network architecture to just three layers – access,
transport, and service and core applications, supported by a single operations and
business support system. More effective service lifecycle management is another benefit
of modernization. Adding capabilities for automated service provisioning makes the
whole process more cost-effective and raises the uptake of new services.
4. Expand fast and flexibly: In fast-growing emerging markets, the challenge is to meet
huge demand and gain market share while ensuring efficiency and the quality of end-user
services. We offer build-up solutions for efficient growth that cover activities such as
network planning, implementation and project management, local logistics and materials
as well as systems integration for the base station sites. Solutions such as outdoor base
station sites and shelterless sites are smaller and easier to build, thus supporting fast and
efficient rollout. For outsourced network operations and management, our Global
Network Operations Centers consolidate a range of services solutions into one location to
provide greater efficiency for customers and deliver many back office services tasks.

5. Maximize the growth opportunity: Emerging markets offer growth potential from vast
numbers of new subscribers, particularly in rural areas. Being lean and efficient plays an
important role in providing affordable access to match the limited communications
budgets of many of these subscribers. Maximizing this growth opportunity takes a mix of
new technology and fresh business thinking. For example, our Village Connection
solution is an innovative way to extend the reach of communications village-by-village
using established IP and GSM-based technologies. We also offer SMS-based top-up
solutions for micro payments as low as USD 0.50, which are crucial to serve subscribers
with low and sporadic incomes. This solution is also a business opportunity for local
entrepreneurs, who can provide top-up services.

Conclusion: According to the above mentioned ways and different strategies for
improving operation efficiency , any organizations can reduce its operational cost, raw
material visibility , better quality products etc. Technology helps organization for
different process of operations like design, manufacturing, delivering etc. The field of
Operations Management has been changing dramatically due to the emergence of a truly
global economy, significant advances in information and process technology, and the
continued growth of services. The Technology and Operations Management Area (TOM)
focuses on value creation on a global scale through innovative product and process
design, project management as well as on value capture through effective supply chain
management.